The Dogecoin price has lost momentum. A few days after the digital currency rallied by more than 30% to $0.0698, the coin has retreated and is trading at $0.0585. Its market cap has dropped $7.59 billion, according to data compiled by CoinMarketCap. Its ranking has also dropped substantially from an all-time high of 7 to 20.
What happened: Altcoins have done reasonably well recently, helped by the strong performance of Bitcoin and Ether. Some popular coins like Polkadot, Stellar Lumens, and XRP have rallied by more than 20% in the past seven days. Dogecoin, on the other hand, has struggled as the hype surrounding the meme coin fades. Indeed, a look at the recent Google Trends shows that fewer people are searching for the coin.
Also, its mentions in social media has faded. Elon Musk, its biggest evangelist has not tweeted about it for a while. This, coupled with the fact that very few stores accept the currency, has seen more traders avoid the coin.
The four-hour chart shows that the DOGE price has been in a tight range since February when its hype started. In this period, except on rare occasions, the price has remained between the support and resistance levels at $0.052 and $0.063. This price is also slightly above the 50% Fibonacci retracement level and slightly above the 25-day moving average. Its volatility has also waned.
Therefore, in my view, the Dogecoin price will remain at this range as traders wait for a catalyst. In this period, the key levels to watch will be the support and resistance levels mentioned above.
